Siemens Public Communication gets AAA

Crisil has assigned a AAA (pronounced Triple A) rating to the proposed Rs. 50 crore non-convertible debenture programme of Siemens Public Communication Networks (SPCNL). The P1 plus (pronounced P one plus) rating assigned to the Rs. 50 crore commercial paper programme of SPCNL has been reaffirmed.

The outstanding rating reflects SPCNL's strong market position in the telecom equipment market in India, high financial and technical support to SPCNL from its parent company, Siemens AG (SAG) (Germany), significant financial discipline and SPCNL's healthy financial position as characterised by comfortable operating margins, low gearing and high interest coverage. These factors offset the highly competitive nature of the telecommunication equipment industry, which has resulted in continuous decline in realisations.

SPCNL was incorporated in October 1996 and is in the business of telecommunication network equipment supply, network design and implementation, service support for telecom networks and software development. SPCNL's parent, SAG is a world leader in several application areas of Electrical and Electronics Technology. SAG is one of the global leaders in the sectors of energy, industry, transportation, health care, lighting, information and communications with net sales of 78 billion Euro in 2000 and a presence in over 190 countries in the world. SAG currently holds 70 per cent equity in SPCNL, with the balance being held by Siemens (India). SPCNL was formed as a result of the hive off of Siemens (India) telecom division to a separate company - Siemens Communication Software (SCSL), with effect from October 1, 1996. SCSL was renamed Siemens Public Communication Networks.

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Section  : Business
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